State Electricity Board Rates Determine Market Price of Power: Delhi HC

PCIT-1 Vs DCM Shriram Ltd. (Delhi High Court)

In the case of PCIT-1 Vs DCM Shriram Ltd., the Delhi High Court ruled that the rates charged by State Electricity Boards (SEB) or power distribution companies are the appropriate benchmarks for determining the market price of electricity. The court clarified that rates on the Indian Energy Exchange (IEX), a platform for trading surplus power, are not comparable for this purpose due to their volatility. The dispute arose when the Income Tax Department challenged the transfer pricing method used by the Assessee in its transaction

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